Saturday, May 24, 2008

HDB revises flat application rules (part II of III)

Continuing the previous post,

Weren't the BTOs supposed to ensure that supply did not outstrip demand (and saddle HDB with unsold homes) (and on the side, cause a fall in housing prices that would anger existing home owners - hmm I wonder which is more important)?

The recent Coral Spring project, for instance, saw about 30% of flats not taken
up even after all applicants had been invited to book a flat.

So a question to self - if BTOs are 70% sold as reported there, then does it reflect that supply is outstripping demand? And how does that tally with 1000+ people still looking for flats and applying to the new BTO projects Compassvale Pearl and Punggol Sapphire?

It tallies. It tells me that the BTOs as HDB is building them is not meeting the needs of that bunch of people who rejected the flats and are still out there shopping. Rather than questioning the pickiness of the homeseekers, maybe the HDB should be asking questions like
"What are they looking for? Why are they so picky? Which 30% of the flats are not being sold? Maybe it's the low floors? Maybe it's the bigger flats? The smaller ones? Would it sell if we priced it lower? Would it sell if we made them bigger?"

If you tell me that the flats were eventually taken up after many applicants rejected them, sure, I'll agree that maybe those guys in front were picky, and the guys later got their homes in the end - after a longer wait then necessary. But when nobody wants the flats at all - maybe those guys aren't being picky. Maybe those flats really are lemons. I wouldn't know, I didn't apply - but if I had to guess from the available info I'd say, hell yes those flats must have been bad.

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